The Government has said it’s taking steps to address the loophole in the temporary wage subsidy scheme (TWSS), which disqualified some women returning from maternity leave.

Prompted by union demands, the decision brings an end to weeks of uncertainty for new mums who were hit financially or feared for their jobs.

Last Friday finance minister Paschal Donohoe announced that he has revised the scheme to address the strict criteria that excluded returning mothers and people on adoptive leave.

The change required legislation, which isn’t possible until a new Government is in place. But Donohoe said its provisions would be backdated to 26th March, and that Revenue would adopt the measures in the meantime.

Irish Congress of Trade Unions’ general secretary Patricia King welcomed the announcement.

“These women are bona fide employees often with a long employment history with the employer registered with Revenue for the TWSS. Excluding them from coverage was unacceptable and in direct conflict with the spirit of the scheme and the provisions in employment equality legislation,” she said.

The temporary wage subsidy scheme was introduced to help struggling employers pay salaries. It required workers to have been on payroll on 29th February or to have been paid in either January or February.

This excluded mothers who were on unpaid leave during those months.

As for the women on paid leave, there were concerns that only the ‘top-up’ amount from their employers would be considered as earnings, making them eligible for much less that their normal pay.

Men on paternity leave or people availing of illness benefit are also subject to this method of calculating the expected wages.

TWSS pays up to €410 per week, subject to the condition that employers keep the workers on their books.